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Section 1126 Acceptance of plan (Judge Gargotta)

In re Save Our Springs Alliance (April 14, 2008)Issue: Whether (1) the deadline to obtain confirmation can or should be extended; (2) designation of vote was cast in bad faith, and (3) Plan should be confirmed or denied due to: gerrymandering by improper classification, lack of an impaired accepting class, best interest of creditors test not met, feasibility, discharge is not permissible where the plan in essence does not provide for the Debtor’s continuation in “business”, cramdown is not permissible where insider claims are not subordinated to payment in full of all other claims, lack of good faith?Holding: The Court finds that the Motion to Extend Time should be Granted in part and Denied in part, the Vote Designation Motion should be Denied, and confirmation of the Debtor’s Plan should be Denied.